Industrial growth moderating

160111_Ipar_ENAccording to the preliminary data, unadjusted industrial production was up 9.5% in November – a growth rate almost as high as in October – but the calendar adjusted output grew by only 7.3% year-on-year, a notable slowdown compared to the 12.7% registered in the previous month.

This slowdown, however, was not unexpected: the seasonally and calendar adjusted production volume slipped by 1.4% month-on-month, an expected fall-back after the strong upturn in September-October. Even so, the generally upward trend remains, which is good news, considering the stagnation of German manufacturing export sales throughout the last year.

Some further downward drift can be expected in December – in the light of the year-end drop in the manufacturing PMI – but the annual average industrial growth rate will exceed 7% in 2015 as a whole. This year, however, will see a more pronounced slowdown of industrial expansion.